GAM Investments has announced an interim net-zero target for its portfolios, which means more than a third of assets are set to decarbonise over the next eight years.
The group has announced net zero targets for 2030 including:
- Have 75% of assets in material sectors aligned or aligning with net zero (not including sovereign assets, mortgage-backed and insurance-linked securities, multi-asset, and alternatives)
- Achieve a 50% reduction in financed carbon emissions (i.e. emissions/$1m invested attributed using enterprise value) from a 2019 baseline
- Engage directly or collaboratively with 90% of its financed emissions to ensure they are aligned or in the process of aligning to net zero
GAM said the targets cover more than a third of its total assets under management, which, as at 30 June 2022, was $32.9bn.
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It signed up to the Net Zero Asset Managers initiative (NZAM) a year ago, which means assets should line with net zero by 2050 or sooner and support Paris Agreement goals.
The group has also become a signatory to the Powering Past Coal Alliance (PPCA) Finance Principles, joining investors and governments alike in accelerating the transition from high-polluting coal to cleaner energy.
Stephanie Maier (pictured), global head of sustainable and impact investment at GAM Investments, said: “It’s imperative that in the midst of soaring energy prices and inflation we do not overlook the ‘decade of transition’ that is well underway. Our response to the climate change challenge will significantly shape the investment landscape. Those investors committed to net zero have a critical role to play in supporting a net-zero future.
“We are proud to support our clients in delivering on their net-zero commitments. Our interim targets reflect GAM’s commitment to securing real emission reductions in our portfolio and accelerating the low-carbon transition.”